Choice said Monday that while it received support from some Wyndham shareholders, it wasn't sufficient enough for the company to conclude that a deal could be done, particularly when taking into account the Wyndham board's opposition to a combination.
There was also some resistance from hotel franchisees to the deal.
Choice launched a hostile takeover offer for Wyndham in December after repeated attempts to reach a deal with the rival hotel chain were rebuffed. Its exchange offer to shareholders of Wyndham, which runs
Choice's exchange offer expired on Friday. The company also said Monday that it was withdrawing its slate of director nominees for Wyndham's board.
“Choice intends to continue focusing on its standalone strategy, which the company is confident will create significant long-term value for its stockholders and franchisees,” it said in a prepared statement.
“The Wyndham board is pleased that Choice has ended its hostile pursuit and proxy contest, following the expiration of its unsolicited exchange offer,” Wyndham Chairman
Choice had been trying to work out a deal for Wyndham, based in
Holmes also said in October that Choice’s bid was “subject to significant business, regulatory and execution risk,” and that Choice had been unable to address Wyndham’s concerns.
The Biden administration has been much more aggressive than previous administrations when it comes to antitrust reviews, regardless of the economic sector.
Shares of Choice rose nearly 4% in midday trading, while Wyndham's stock climbed slightly.
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
, source